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Segro board backs Prologis best and final offer after earlier rejections
Prologis now has until 12 August to make a firm offer, valuing Segro at £10.32 per share under the revised terms.
The board of UK warehouse landlord Segro has reversed course and said it will recommend shareholders accept Prologis’s revised “best and final offer” after earlier rejected approaches. According to the Guardian Business, the decision came in a statement issued after London trading closed on Wednesday, with the board saying it had “unanimously concluded” to recommend the offer to investors.
Prologis, a California-based company, offered 0.092 new shares for each Segro share, valuing Segro at £10.32 per share. The proposal is 3.9% higher than the previous offer and represents a 9.5% increase versus the initial approach disclosed in June, the outlet reported.
Under the deal terms, Segro shareholders would be entitled to a permitted dividend, and Segro has asked Prologis to commit to establishing a secondary listing for Segro on the London Stock Exchange, Guardian Business added.
The revised bid also extended a key “put up or shut up” timeline. Prologis’s previous requirement to announce a firm intention to make an offer or walk away, set for 5pm UK time on Wednesday, was extended by three weeks, giving Prologis until 12 August to make a firm offer, while Prologis said it welcomed the additional time.